Date: December 20, 2022 Source: Ministry of Commerce
On December 18, 2022, the website of Horizon Radio reported that Petronas decided to withdraw from South Sudan, which has served the oil industry in South Sudan for 24 years. This was announced by Benjamin, Minister of Presidential Affairs of South Sudan, when he led a delegation to Malaysia and returned to Juba International Airport on December 18.
Minister Benjamin said that he led a delegation from the South Sudanese government to the headquarters of Petronas to understand the reasons for their withdrawal. He will introduce the results of the visit and the decision of Petronas to the President and the Cabinet. It is unclear whether the sudden withdrawal of Petronas will have a significant impact on South Sudan's oil export, which accounts for almost all of South Sudan's revenue.
Petronas began to invest in the 5A block oilfield in Tuanjie State, South Sudan in 1996. In 2003, the company purchased the oil assets of Block 5A from Lundin Oil Company at a price of 142.5 million dollars.
British oil giant Savanah recently announced that it plans to purchase Petronas' oil and gas assets in South Sudan at a price of US $1.25 billion. It is reported that Savanah is seeking to take over the assets of Petronas in South Sudan, including 30% shares in Blocks 1, 2 and 4, 40% shares in Blocks 3 and 7, and 67.9% shares in Block 5A.
The transaction will be implemented after the approval of the South Sudan government and Savanah shareholders